NSE/BSE Codes: BSE: 543334 (NUVOCO), NSE: NUVOCO

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015 regarding a Show Cause Notice issued by tax authorities to the company's wholly owned subsidiary.

Involved Parties / Authorities:

  • Issuing Authority: Dy. Commissioner, State Tax (Audit), Central Division, Patna, Bihar
  • Recipient Company: NU Vista Limited (wholly owned subsidiary of Nuvoco Vistas Corporation Limited)
  • Regulatory Reference: SEBI Master Circular no. SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023 (as amended)

Date / Timeline of Event:

  • Disclosure Date: September 29, 2026
  • Notice Period: Financial Year 2022-23
  • Filing Deadline: Company will file appropriate reply against the Show Cause Notice

Brief Description of Outcome / Dispute:

The Dy. Commissioner, State Tax (Audit), Central Division, Patna, Bihar has issued a Show Cause Notice to NU Vista Limited proposing to:

1. Deny credit for Input Tax Credit (ITC) brought forward from previous year

2. Confirm demand of ITC already reversed temporarily

3. Impose tax on advances received for goods

The proposed demand under section 73 of the CGST Act, 2017 for FY 2022-23 is Rs. 10,70,08,912/- (₹107.008912 crore) with consequential interest and 10% penalty also proposed.

Impact of Outcome:

Financial Impact:
  • Proposed Demand: ₹107,008,912 (10.70 crore) principal amount
  • Additional Liabilities: Consequential interest and 10% penalty proposed
  • Company Assessment: The company states "It will have no major financial impact on the Company"
  • Reasoning: Company believes the demand is against provisions of law and supporting documents with legal precedents will prove allegations wrong
Operational / Business / Strategic Impact:
  • No operational disruption indicated
  • Company maintains normal business operations
  • No mention of compliance requirements or strategic consequences
Other Implications:
  • Reputational risk from tax dispute disclosure
  • Regulatory compliance requirement fulfilled through timely disclosure
  • Market perception managed through company's confident stance on legal position

Next Steps / Required Actions:

  • Company will file appropriate reply before the Dy. Commissioner, State Tax (Audit), Central Division, Patna, Bihar
  • Legal defense preparation with supporting documents and legal precedents
  • Continued monitoring of the proceedings